CFIN Chapter 6 || with 100% Error-free Solutions.

debt correct answers a loan to a girm, gov't, or individual discounted securities correct answers securities selling for less than par value treasury bills (T-bills) correct answers discounted debt instruments issued by the US gov't characteristics of debt correct answers 1. principal value 2. interest payments 3. maturity date 4. priority to assets and earnings 4. control of the firm (votings rights) types of short term debt correct answers 1. treasury bills (t-bills) 2. repurchase agreements (repos) 3. federal funds 4. bankers acceptance 5. commercial paper 5. CD's 6. eurodollar deposits 7. money market mutual funds repurchase agreement correct answers short term debt, arrangement where one firm sells some of its financial assets to another firm with a promise to repurchase the securities at a later date federal funds correct answers short term debt, overnight loans from one bank to another bankers acceptance correct answers short term debt, instrument issued by a bank that obligates the bank to pay a specified amount at some future date commercial paper correct answers short term debt, a discounted instrument that is a type of promissory note or legal IOU issued by large, financially sound firms CD correct answers short term debt, certificate of deposit, interest earning time deposit at a bank or other financial intermediary eurodollar deposit correct answers short term debt, a deposit in a foreign bank that is denominated in US dollars money market futual funds correct answers short term debt, pools of funds managed by investment companies that are primarily invested in short term financial assets types of long term debt correct answers 1. term loans 2. bonds term loans correct answers long term debt, a loan generally issued from a bank or insurance company where the borrower agrees to make a series of payments consisting of interest and principle coupon rate correct answers long term debt, interest paid on a bond or other debt instrument stated as a percentage of its face (maturity) value government bonds correct answers long term debt, debt issued by a federal, state, or local gov't